Stock Market Drops

61

By blerim

Today it was announced that Dow Jones industrial average has lost more than 400 points this week. According to NASDAQ composite index fell by 5 percent and the Standard & Poor's five hundred directory lost 3.5 percent.

The Federal Reserve Bank cut rates by three-quarters of a percentage point to 3.5 percent, citing the weakening economic outlook. The shift came in advance of the central bank's frequently planned meeting.

Along with any stock the financial stocks are expected to get one more slap following Bank of America and Wachovia which have both posted miserable stock consequences due to the mortgage and credit clutter.

Bank of America's net income fell by around 95 percent to approximately $268 million in their Q4 as the company took $5.3 billion in record related to composite liability tools.

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Comments

Ralph Deeds profile image

Ralph Deeds Level 6 Commenter 4 years ago

The Fed's .75 point cut in the Fed Funds rate announced this morning, sooner than expected, is an indication that the Fed is quite concerned about where the U.S. and world economy may be heading. I don't think we've heard all the bad news yet, but who knows?

blerim profile image

blerim Hub Author 4 years ago

All of this of course is in response to a panic over the fact that the US is either about to enter a recession or it is already in one which was sparked by the subprime loan crisis. But aside from the markets, how vulnerable is the rest of the world to this coming economic crisis in the US.

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